posted on Jun, 22 2010 @ 08:11 PM
(Reuters) - Brazilian state oil company Petrobras won shareholder approval on Tuesday for one of the world's largest stock offerings, which will
finance ambitious plans to pump billions of barrels of oil from deep beneath the ocean floor.
The vote paves the way for Petrobras (PETR4.SA)(PETR3.SA) to issue as much as 150 billion reais ($84 billion) of new stock that has become the
cornerstone of a plan to turn the country into a major energy exporter.
The capitalization plan further cements Brazil's determination to push ahead with the development of deep-water oil reserves that are seen as key to
economic development, despite growing skepticism about offshore drilling sparked by BP's massive Gulf of Mexico oil spill.
Petrobras has the world's largest exploration and production investment budget for 2010 and is the world's leader in deep water offshore
MASSIVE OFFSHORE PLAN
Replenishing Petrobras' capital base is crucial for the company's $224 billion five-year investment plan, which focuses on developing the subsalt
region, an area deep beneath the ocean floor under a thick layer of salt that may hold 50 billion barrels of oil, according to industry estimates.
As I have shown in another thread, Petrobras is a world leader in deep water oil drilling and a pioneer as well, having developed its own technology
to explore oil offshore.
About 87% of the oil explored by Petrobras comes from deep water and ultra deep waters. Some of those go even deeper than Deepwater Horizon.
Recently, Brazil has become self sufficient, producing enough oil so it doesn't have to import oil from any other country, anymore. Now, plans are to
expand the oil production to begin to export oil to other countries.
Petrobras is now the 4th largest energy company in the world and it has an oil reserve of 15 billion barrels.
The exploration of the subsalt region is considered a key issue for the oil industry and Petrobras is one of the few pioneering in such exploration.
LINK TO PETROBRAS WEBSITE
LINK TO REUTERS ARTICLE
[edit on 22-6-2010 by henriquefd]